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| RE: Cost of living adjustments for 2008, Defined Contribution plans... |
| Dear Trustee: |
| The IRS recently announced the cost-of-living adjustments to certain dollar limits on qualified plans and related provisions that affect plans. |
| 2007 | 2008 |
| $15,500 | $15,500 | The limitation on the exclusion for elective deferrals under Code Section 402(g)(1) (i.e., the limit on cumulative 401(k), 403(b), Roth elective plan contributions) |
| $5,500 | $5,500 | The special catch-up contribution available for individuals who are age 50 and up on Dec 31, 2008. |
| $45,000 | $46,000 | The defined contribution plan limitation under Code Section 415(c)(1)(A) (Combined total of all contributions, excluding catch-up but including both employee deferral and all employer contributions.) |
| $225,000 | $230,000 | The annual compensation limit for computing certain benefits and contributions (Maximum compensation to be taken into account when computing all employer contributions such as matching, safe harbor and/or profit sharing.) |
| $97,500 | $102,000 | The taxable wage base. (For computing Social Security and certain other benefits.) |
Definition of a Highly Compensated Employee under Code Section 414(q) is defined as any employee who |
*is/was a 5% owner of the company at any time during the current or preceding year, OR |
| Sincerely, R. Bruce Tanner & Associates, Inc. |
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